OPS - SP007 - Cost Control

COST CONTROL
Quality Management System
COST CONTROL
CONTENTS
1.0 PURPOSE & SCOPE
2.0 DEFINITIONS
3.0 FLOWCHART
4.0 PROCEDURAL TEXT
5.0 REFERENCES
6.0 ATTACHMENTS
 Copyright. This document is the property of PT Thiess Contractors Indonesia and all rights are
reserved in respect of it. This document may not be reproduced or disclosed in any manner
whatsoever, in whole or in part, without the prior written consent of PT Thiess Contractors
Indonesia. PT Thiess Contractors Indonesia expressly disclaims any responsibility for or liability
arising from the use of this document by any third party. Copies printed from the Thiess
Management Systems are UNCONTROLLED.
Revision Status
Issue / Date Revision Description By Checke Checke Approved

Rev. d d
Modification from
A0 October 99 ES RL BAM
corporate Procedure
A1 May 00 TMS Intranet Version ES RW RL BAM
A2 August 00 Cost Code Changes BMcG ES RL BAM
A3 Nov 00 TMS Review RO ES RO BAM
PT Thiess Contractors Indonesia Page 1 of 14 TCI-OPS-SP007/A3
Copies printed from the Thiess Management System are UNCONTROLLED

COST CONTROL
1.0 PURPOSE AND SCOPE

The purpose of this procedure is to describe the function and responsibilities associated
with the effective operation of cost control on the project.
This procedure shall apply to all projects undertaken by the Company.
Note: The President Director shall approve alternative costing systems to that of
SITEMAN, such intentions shall be noted in the minutes of the Contract Handover
Meeting conducted in accordance with TCI-TEN-SP001 “Tender and Contract
Review”.
2.0 DEFINITIONS
Budget is defined as the amount of money available to carry
out the works or a portion of the works.
Original budget is the amount of money allowed in the tender to carry
out the works or a portion of the works.
Revised budget is the amount of money currently available to carry out
the works or a portion of the works.
Budget / Direct
Cost Earnings is the portion of the budget earned to date resulting
from actual work carried out and not necessarily that
claimed in progress claims.
Subcontract
Budget is part of the budget which is allocated to a particular
subcontract for carrying out a portion of the works.
Cost Code is a four digit number representing a cost centre which
is established to manage the budget, commitments and
costs associated with a particular portion of the works.
Cost Code
Groupings is an assigned range of Cost Codes to cover a
particular work type or trade.
Cost Type is a subdivision of either the budget or costs. The cost
types are:
 Labour
 Materials
 Subcontract
 Internal Plant

COST CONTROL
 External Plant
The Green Sheet is the tender summary in CCATS/CATS which sets:
 Direct Costs totals by cost type
 Indirect Cost/Preliminaries totals by cost type
 Provisional Sums/PC Items
 Profit
 Escalation allowances
 Late adjustments and discounts
Direct Costs are the costs associated with carrying out the physical
work defined by the Bill of Quantities, Technical
Specification and the Drawings.
Indirect Costs
or Preliminaries are the overhead costs associated with establishment,
administration and supervision of the project.
A commitment is a cost to which the Company is obligated in order to
obtain the services of, or the supply of goods from, a
third party.
Productivity is the relationship between an applied resource and the
work accomplished. This measures a single output
(work accomplished) relative to a single input.
Performance is the relationship between applied methods and the
work accomplished. In construction, accomplishment
is the finished work-in-place; methods are the way the
work was done.
3.0 FLOWCHART

COST CONTROL
3.0 FLOWCHART TCI-OPS-SP007

COST CONTROL
TCI-OPS-SP007-FC 3.1/A1 -
COST CONTROL
SUCCESSFUL TENDER
PM FC
PM
ALLOCATE BUDGET - ACTIVATE CYBERTRAC
SITEMAN COSTING SYSTEM -
IN ACCORDANCE WITH DOWNLOAD BUDGET AND COST
THIS PROCEDURE CODES FROM CCATS OR BCATS,
AND PREPARE PROJECT TCI-TEN-SP001
MANAGERS WORKSHEETS TENDER AND
PE CONTRACT REVIEW
PRODUCTION CONTROLS -
PREPARE PLANS FOR
PRODUCTION CONTROLS
(SITE REPORTS), I.E: AM
* MANHOUR REPORTS PM
DETERMINE BUDGET EARNINGS - PROCESS INVOICES
* CONCRETE LEDGER
(WASTE CONTROL) USING ACCURATE QS, PROJECT
* PLANT LEDGER (PLANT MANAGERS WORKSHEETS AND
PRODUCTIVITY) PROGRAM DATA
* REO LEDGER (WASTE AM
CONTROL) SUBMIT ACCRUALS
* OTHER PRODUCTION
CONTROLS
CYBERTRAC ACCOUNTING
PE DETERMINE COSTS TO DATE - PM
EXECUTE WORKS -
DURING COST PERIOD DERIVE TRUE COSTS OF WORK
GATHER COSTS AND DATA UNDERTAKEN DURING COST
IN SITE REPORTS PERIOD, I.E. MONTHLY COST
(PRODUCTIVITY DATA). REPORT (CYBERTRAC) PLUS
UNDERTAKE ACCURATE QS ACCRUALS
AT THE END OF THE COST
PERIOD
PM
PM DETERMINE COSTS TO COMPLETE -
CLAIM FOR WORKS
USING DATA FROM SITE REPORTS,
EXECUTED - AT THE
BUDGETS AND COSTS TO DATE,
COMPLETION OF A COST
ESTIMATE COSTS TO COMPLETE
PERIOD PREPARE A
PROGRESS CLAIM FOR
PAYMENT
PM
PM FORECAST COST AT COMPLETION -
FORECAST REVENUE - DERIVED FROM COST TO DATE
INCLUDING PLUS COST TO COMPLETE
CONSIDERATION OF
VARIATIONS AND
CONTRACTUAL CLAIMS
FORECAST PROFIT - PM
ALSO DETERMINE GAIN / LOSS
PER COST CODE
LEGEND
QS QUANTITY SURVEYOR
PM PROJECT MANAGER
PE PROJECT ENGINEER
PM FC FINANCIAL CONTROLLER
TCI-OPS-SP009
REPORT TO MANAGEMENT AM ADMINISTRATION MANAGER
PROJECT REPORTING PROCEDURE REFERENCE

COST CONTROL
3.0 PROCEDURAL TEXT

4.1 Key Responsibilities
4.1.1 Business Unit Administration Manager
The Business Unit Administration Manager is responsible for allocation of a
Project Number.
4.1.2 Project Manager
The Project Manager is responsible for determination of cost codes, original
project budgets, subcontract budgets, implementation of the cost control system
and for monitoring and forecasting revenue and costs.
The Project Manager is responsible for ensuring costs are minimised, revenue is
maximised, a favourable cash position is maintained and for maintaining project
budgets throughout the course of the project.
Additionally the Project Manager shall assess productivity and performance
outputs and direct revisions to the project resources and construction program
accordingly.
4.1.3 Project Engineer
The Project Engineer is responsible for implementation of the Production
Control Program. Additionally the Project Engineer shall review the
productivity and performance outputs from the program and advises the Project
Manager on the current and projected results. The Project Engineer shall, on
direction from the Project Manager, amend the construction program using the
information developed in the production control program.
4.1.4 Estimator
The Estimator is responsible for ensuring that the final copy of the tender on
CCATS/CATS reflects the value of the Contract as awarded.
4.2 Principles of Cost Control
In order that the project is run on a financially sound basis, the Project Manager shall
exercise the following controls.
 A cost control system is to be established to enable accurate cost monitoring and

forecasting throughout the project
 Cash position is to be accurately forecast on a monthly basis by the Project

Manager, the forecast shall be distributed to the Business Unit Manager,
appropriate Functional Managers and Administration Managers
 A favourable cash position is to be maintained by ensuring:

- Prompt lodgement of maximum progress claims

COST CONTROL
- Rational timing of procurement orders

- Tight controls of credit terms
- Maximum payment for materials on site
- Prompt submission and settlement of insurance claims
- Prompt submission and agreement of variations
- Prompt submission and settlement of contractual claims
- Holding maximum retention on subcontractors
 Appropriate action is taken to assess current and future utilisation of plant and
equipment
4.3 SITEMAN System
SITEMAN is a computer based site management system to be used for project
management in Indonesia. The system provides head contract administration,
subcontract administration and forecasting modules. The current version 3.15/3.16 of
SITEMAN is a DOS based system which is to be discontinued. All new projects are to
use SITEMAN 2000 with existing projects to be progressively migrated with assistance
from Technical Services Indonesia. All SITEMAN 2000 users must receive appropriate
training.
Requests to install new projects onto SITEMAN are to be coordinated with Technical
Services Indonesia. The SITEMAN download shall be arranged by Technical Services
Indonesia.
SITEMAN reports, which are most likely to be requested by senior management, are:
 Detailed Forecast Report
 Forecast Summary
 Variation Report by Status
 Under / Overclaim Report
4.4 Project Number and Cost Codes
 The Project Number is a six-digit number unique to each project. The first two
digits of the Project Number is the Area number
 Standard Cost Codes have been established for Overheads/Preliminaries. Cost

Code Groupings have been established for cost codes for Direct Costs
 Direct Cost Codes have been grouped by discipline (i.e. Civil, Mining, Building
or Process) and then by work type or trade

COST CONTROL
Overheads/Preliminaries Cost Codes are standard and have been grouped under the
following headings:
 Recurring
 Non-Recurring
 Plant
4.5 Original Budget
The Original Budget is established by allocating the amounts allowed in the tender to
cost codes.
The project needs to be dissected into logical, meaningful budget activities against
which the project can be costed and monitored throughout its life. In this regard, the
ability to accurately record costs to the detail envisaged should be considered.
The computerised accounting system records costs by cost type with separate
identification for the various cost types as follows:
02 - Labour
03 - Materials
04 - Subcontract
05 - Internal Plant
06 - External Plant
The budget allocations therefore also need to be carried out by cost type to allow
accurate budget versus cost comparisons.
The procedure for allocation of amounts allowed in the tender to costs codes is carried
out in SITEMAN and is complete when all amounts allowed in the tender (except
profit) have been allocated to cost codes, and the Set Final Allocations flag has been
set.
Any changes to budget allocations after this time are carried out by budget transfers.
The Original Budget is maintained in SITEMAN at all times.
4.6 Revised Budget
The Revised Budget is established by varying the Original Budget during the course of
the project to take account of changes arising out of:
 Quantity Adjustments in Schedule of Rates contracts
 Variations
 Rise & Fall

COST CONTROL
 Sundry Income
 Insurance claim receipts
 Budget Transfers between cost codes and cost types

To ensure that the status of the project is current, the Revised Budget is to be regularly
maintained in SITEMAN. This should be done monthly, prior to preparing the Forecast
Report.
4.7 Subcontract Budget
Subcontract budgets can be established in SITEMAN by allocating contract budgets
which have a designated subcontract cost type to subcontracts (i.e. only subcontract
budget of a subcontract cost type can be allocated to subcontracts). If it is desired to
allocate other cost types (e.g. labour, plant) to subcontracts, a cost type budget transfer
must be carried out in SITEMAN.
4.8 Cost Reports
The Cybertrac accounting system will produce the following monthly cost reports:
 Job Cost Code Summary by Cost Code/Cost Type (cost code totals by cost
type)
 Job Cost and Revenue Dissection Report (all transactions for the month)
4.9 Monitoring & Forecasting

The SITEMAN system provides two (2) alternate methodologies for monitoring and
forecasting revenue, costs and profit, namely:
4.9.1 Actual Cost Forecasting
Costs to date are monitored against Budget Earnings for cost codes with Costs
at Completion being the total of actual costs and calculated Costs to Complete.
The Forecast profit is the difference between the forecast Revenue at
Completion and the forecast Costs at Completion.
The Cost to Complete may be determined by a detailed estimate, or by
forecasting on unit rates where sufficient data is available to provide confidence
in the forecast rates.
4.9.2 Committed Cost Forecasting
Costs at Completion are determined by adding the value of Actual
Commitments, Anticipated Commitments, Non-Committed Works and
Contingencies. The Forecast Profit is the difference between the forecast
Revenue at Completion and the Costs at Completion.

COST CONTROL
The value of commitments from Subcontracts and Orders is to be kept

constantly updated in SITEMAN or other appropriate cost system.
Actual Cost Forecasting is generally used on civil projects while Committed
Cost Forecasting, or a combination of both, on building projects and Process
Engineering.
4.10 Revenue at Completion
4.10.1 Variations
For lump sum contracts the main consideration is to assess the final value of
variations to be added to the original lump sum amount. In some cases the
variations may embody a reduced scope of work resulting in a reduction to the
original lump sum amount.
i) Approved Variations. For approved variations the agreed figures are to
be used
ii) Submitted Variations (but not approved). For variations that are
recognised by the client and where submissions have been made, there is
a judgement to be made as to whether the submission amount should be
used or whether it would be more prudent to discount this amount to
some degree. In exercising this judgement the experience on the
particular contract to date should be considered together with the
knowledge of the build up of the submitted amount. Taking these
factors into account a conservative assessment should be made
iii) Future Variations. Circumstances that are known to exist that will
generate future variations should only be considered if they are assessed
as being particularly significant in terms of value relative to the contract
sum. Only where the conservatively assessed variation sum exceeds 5%
of the contract sum, should future variations be taken into account
iv) Disputed Variations and Contractual Claims. The most difficult
assessment is that to be made in respect to disputed variations and
contractual claims. In these cases the real issue to be assessed is the
validity of the contractual basis of the claim. This assessment is to be
agreed with the President Director after considering any advice he
deems appropriate. When such assessment is that the claim is
contractually valid, then it shall be included at a value that is limited to
incurred or estimated costs as appropriate.
4.10.2 Escalation (Rise & Fall)
Where a contract is subject to rise and fall an assessment has to be made as to
the final value of rise and fall.
This assessment must be predicated upon the contractual terms for its
evaluation taking into account the historical economic data. The forecast for
the value of future rise and fall should be based on current indices and future
increases in indices should not be predicted.

COST CONTROL
4.10.3 Schedule of Rates Contracts

For Schedule of Rates contracts the largest task is usually that of estimating
final quantities to be inserted into the schedule for extension to the Revenue at
Completion.
Original quantities should always be used in this exercise unless specific
information has become available that indicates a change is valid. In these
circumstances a detailed computation of final quantities in accordance with the
contractual method of measurement is to be made.
Final quantities should be agreed at the earliest possible time.
4.10.4 Contract value not in US Dollar (Local Currency)
When some items in a contract are valued in local or other currencies, the
current exchange rate is then used for the conversion to US Dollar. During the
project period, any significant changes of the exchange rate against US Dollar
will be included into rise and fall calculations.
4.11 Cost at Completion
The Project Manager shall as a minimum use the following tools in preparing Cost at
Completion:
 Check actual costs against budget
 Review Production Controls & Productivity

The varying nature of the situations that exist between different projects is such that it
is not deemed appropriate to set out the precise set of procedures to be applied on all
projects but rather to discuss the underlying philosophy and allow some discretion as to
the detail which is applied to particular projects.
4.11.1 Costs Incurred to Date
The monthly cost reports give cost to date details which then require inclusion
of accruals for any costs not entered into the accounting system at the end of
period cut off date.
Every effort needs to be made to ensure that the reported costs to date are
checked and adjusted if necessary to include all relevant identifiable direct and
indirect costs consistent with the work that has been carried out both on and off
site.
Forecasting from an incorrect cost base will produce distortions that manifest
inaccurate and misleading reporting of contract results.
Estimating Costs to Complete involves making an assessment of future
performance and thus probably represents the most difficult task in forecasting
the final result (profit or loss) for a contract.

COST CONTROL
4.11.2 Contracts Less Than 15% Complete

In the early stages of a contract with little work completed there should be no
necessity to undertake a fully detailed re-estimating exercise.
Any committed costs should be reviewed against the budget regardless of
whether the work is actually executed or not. Variances to budget should be
shown. Actual costs should also be compared with budget earnings. The general
philosophy at this early stage is that there should be no necessity to change the
original forecast unless specific information has emerged that has significant
negative impact.
4.11.3 Contracts Above 15%
This range clearly represents the major work within a project and covers the
substantial duration of the contract period. Other than in the case of short
duration and/or relatively simple projects, it is usually necessary to undertake a
thorough re-estimate of all work to completion.
For each cost code where work is underway, full cognisance of the existing
costs must be taken. For cost centres where commitments have been made i.e.
purchase orders, sub-contracts agreements etc., these committed costs must be
entered into the forecast. Labour and plant rates used in the estimate of Costs
to Complete must be adjusted where necessary to reflect the actual costs being
incurred and any emerging factors not considered in the original budget must be
entered.
In summary, during this stage of the project, the Cost to Complete estimate
must be a comprehensive and thorough re-estimate of all outstanding work
taking into account the prevailing cost data to date, all committed costs and all
emerging factors that differ from the original budget.
Work items that have not commenced should not be changed other than for
taking account of committed costs and/or newly emerging factors.
4.11.4 Contract Variations
In all cases the assessment of costs associated with variations to the contract
must be made to comply with principles set out in the Revenue at Completion
section.
4.11.5 Escalation of Costs
In all cases the effects of escalation of costs requires assessment and inclusion in
the Cost to Complete estimate.
That is, within the detailed Cost to Complete estimate, costs that are current at
that time are to be used for the basic elements of labour, plant, materials,
subcontract etc. Account needs to be taken of the costs of escalation on works
which have not commenced and are being forecast at budget.

COST CONTROL
When the escalation has been assessed in this way it should be compared with
the corresponding sum assessed in the estimate of Revenue at Completion.
Only in cases where it has already been established in the prior history of the
contract that a significant gain is being made on rise and fall revenue should
such a trend be reflected in the comparison of future escalation revenue and
future escalation costs. Other than in cases where this benefit trend is evident in
the prior history, should an assessed escalation cost be carried into the estimate
summary that reflects such a future benefit. In all other cases when the
assessment is completed and the comparison with escalated revenue made, the
escalated cost should be adjusted if necessary to equal escalated revenue.
That is the figures for both escalated revenue and escalated costs should be
included such that budgets properly reflect the assessment of final contract
value but should produce a neutral influence on final profitability unless the
history of the contract to date indicates that a significant benefit (or loss) is
evident from the escalation factor.
4.12 Production Control
The Project manager in conjunction with the Functional Manager shall determine a
production measurement and control system to be used in addition to the standard cost
control requirements on projects using SITEMAN, and is considered to be a means to
improving both productivity in construction and competence in construction
management, as well as providing day-to-day information on costs.
On mining projects the recommended tool is MINETRAC, which is available from
Technical Services Indonesia.
4.13 Committed Cost Methodology in SITEMAN
4.13.1 Orders
i) On projects for which committed cost methodology is adopted for cost

control and forecasting, only major purchase orders should be tracked
and forecast through the Orders module in SITEMAN
ii) It is envisaged that most other orders placed and costs incurred would
be related to overheads/preliminaries and these should be tracked and
forecast by actual cost
iii) It is counter productive to spend excessive time entering purchase
orders and invoices for minor items and in entering dummy purchase
orders for other overhead costs not covered by purchase order or
subcontract. The time and effort spent in monitoring and forecasting
costs should bear a sensible relation to the impact of those costs on the
final result

COST CONTROL
4.13.2 Forecasting
i) SITEMAN retains the same Forecast Cost at Completion as the

previous forecast for each cost code. If there has been no previous
forecast, it defaults to the Original Budget. It is the Project Managers'
responsibility to maintain and validate the Forecast Cost at Completion
ii) If commitments are entered or updated between forecasts, the Non-
Committed values will be altered. It is therefore important to check that
the Non-Committed values remaining correspond to the uncommitted
budget or the Project Manager's assessment of the likely uncommitted
costs. This check can be assisted by referring to the inquiry screens for
Subcontracts and Orders available as "soft key" options in the forecast
scree
iii) In order to minimise problems and/or make discrepancies easier to
detect, it is recommended that subcontracts and major purchases be
allocated to their own unique cost codes and that the Browse function in
SITEMAN be used to detect any negative Non-Committed values
4.0 REFERENCES
TCI-TEN-SP001 - Tender and Contract Review
5.0 ATTACHMENTS
TCI-OPS-SP007-ATT 1 - Standard Cost Codes

STANDARD COST CODES
SUMMARY
COST CODES DESCRIPTION
0100 - 0999 Overheads/Preliminaries

1000 - 2999 Building
3000 - 4999 Civil
5000 - 5999 Mechanical/Electrical
6000 - 6999 Environmental Services
7000 - 9999 Unallocated
OVERHEADS AREAS
Area 10 1000 Jakarta Office

1001 Jakarta Estimating/Enginering
1002 Jakarta Plant Department
1003 Jakarta Project Support
1007 Training & Safety
1008 Idle Plant Repair and Storage
1009 YKK Foundation
1010 Process Engineering
1012 Balikpapan Workshop
1013 Plant Other
1014 Safety Department
1015 Information Technology System
1016 Technical Services
Area 30 3000 Balikpapan Office
PT Thiess Contractors Indonesia Page 1 of 14 TCI-OPS-SP007/A2-ATT 6.1

OVERHEADS/PRELIMINARIES COST CODES
RECURRING

0100 Staff Salaries
0101 Employee Benefit
0102 Housing
0103 YKK Contribution
0104 Schooling
0105 Company Contribution Superannuation
0110 Quality Assurance
0120 Consultants
0130 Site Labour
0131 Security Personnel
0150 Site Vehicles
0160 Lost Time Labour
0170 Site Facilities & Services
0171 Site Utilities
0172 Site Communication
0173 Facilities Maintenance
0174 Site Facilities Depreciation
0180 Site Office Expenses
0181 Advertising and Site Promotion
0182 Computer
0190 Camp Accommodation & Services
0192 Camp Maintenance
0193 Other Accommodations
0200 Camp Messing
0210 Clean Up & Rubbish Removal
0220 Hoisting & Cranage
0230 Scaffolding
0240 Plant & Equipment
0250 Small Tools
0251 Survey
0260 Freight
0261 Freight on Fuel
0270 Ground Engaging
0271 Ground Engaging / Under Carriage Excess
0271 Tyre Access
0280 Safety
0281 Safety Consultancy
0290 Testing
0300 Training
0301 Indonesian Training in Australia
0310 Entertainment
0330 LHL Tax
0340 Immigration Cost

OVERHEADS/PRELIMINARIES COST CODES
NON-RECURRING

0400 Personnel Transfers
0401 Business Travel
0402 Leave Travel National
0403 Leave Travel Expatriate
0404 Aircraft Charter
0410 Establish Site Facilities
0411 Site Facilities
0412 Furniture Equipment Office
0420 Establish Camp & Housing
0421 Camp Utilities
0422 Furniture Equipment & Camp Housing
0430 Mobilise & Establish Plant and Equipment
0440 Disestablishment
0450 Insurance
0460 Uninsured Losses
0470 Fees
0471 Securities
0480 Legal Costs
0500 Maintenance
0510 - 0590 Unallocated
PLANT
0600 Fuel Purchases

0601 Purchase Oils (Not including grease)
0610 Fuel/Oil Credits
0620 Servicing Costs
0630 Servicing Credits
0640 Workshop Costs
0650 Workshop Credits
0660 Non-Productive Plant
0670 Plant Department Overheads
0680 Plant Default
0690 Workshop Unspread Labour
NON-SITE RELATED COSTS
0700 Non-Site Related Cost

0710 Audit Fees
0720 Tax and Accounting Fees
0730 Bad and Doubtful Debts
0740 Bank Charges
0745 Bank Interest Expenses
0746 I/CO Interest-Charges
0747 Bank Interest - Income
0750 Exchange Variance
0760 Tender Documents
0770 Singapore Logistics
OTHERS
0800 Plant Accident

0900 Jakarta Project Support Costs
0902 Balikpapan Project Support Cost
0910 Minimum Depreciation
0911 Minimum Insurance/ Finance
0950 Sundry Income
0960-0980 Allocated Cost for Clearing
0997 Head Office Overheads
0998 Cost Default
0999 Group Charges

INCLUSIONS IN OVERHEADS/PRELIMINARIES
COST CODES
0100 STAFF SALARIES
 All Site Staff Salaries (Excl QA Staff)

 Support Staff Salaries (if applicable)
 Special Site Allowances
 Industrial and Statutory Oncosts for above
0101 EMPLOYEE BENEFIT
 Staff Welfare
 Employee Medical Costs
0102 HOUSING
 Rental Subsidies
 Staff Housing
0130 YKK CONTRIBUTION
 Company Contribution
0104 SCHOOLING
0105 COMPANY CONTRIBUTION SUPERANNUATION
0110 QUALITY ASSURANCE
 Quality Audits
0120 CONSULTANTS
 Design Consultants
 Programming Consultants
 Other Consultants
 Head Office Engineering
 Withholding Tax Gross Up
0130 SITE LABOUR
 Drivers
 Cleaners
 Storemen
0131 SECURITY PERSONNEL
0150 SITE VEHICLES
 Cars
 Utilities
 Other Vehicles
 Fuel, Oil, Parking, Tolls and Repairs
 Plant Transport on Site
0160 LOST TIME LABOUR
 Wet Weather Lost Time

 Industrial Dispute Lost Time
0170 SITE FACILITIES & SERVICES
 Office Rental & Maintenance
0171 SITE UTILITIES
 Electricity Running Costs

 Water Supply Running Costs
 Sewerage Running Costs
0130 SITE COMMUNICATIONS
 Radios
 Telephone, Fax Etc
0130 FACILITIES MAINTENANCE
 Site Office Cleaning

 Security
 Maintain Site Roads
 Hire Gantries, Hoardings
 Minor Office Repairs
 Repair Office Equipment
 Partitioning Etc.
0174 SITE FACILITIES DEPRECIATION – BPN ONLY
 Depreciation of Site Building

 Depreciation of Minor Equipment
0180 SITE OFFICE EXPENSES
 Printing
 Stationary
 Photocopier
 Office Consumables
 Courier
 Photography
 Postage
 Publications
 Subscription
 Escorts

0181 ADVERTISING & SITE PROMOTIONS
 Advertising Giveaway
 Exhibition
 Parties
0182 COMPUTERS
 Purchase Cost
 Software
 Maintenance
 Cables
 Diskettes/Printers Ribbon
 Computer Tape
0190 CAMP ACCOMODATION & SERVICES
 Electricity Running Costs

 Water Running Costs
 Sewerage Running Costs
 Costs Associate
0192 CAMP/GUEST HOUSE MAINTENANCE
 Minor Repairs
 Rubbish Removal
 Wet Canteen
 Laundry
 Cleaning
0193 OTHER ACCOMODATIONS
 Non-Staff Accommodation in Hotel Etc.

 Guest House Charges
0194 CAMP FACILITY DEPRECIATION
0200 CAMP MESSING
 Food
 Messing Costs
 Janitorial Costs
0201 CLEAN UP AND RUBBISH REMOVAL
 Bin Hire
 Clean Up Labour
0220 HOISTING & CRANEAGE

 Crane Hire
 Hoist Hire
 Landing Platform Hire
 Crane Operating Costs
 Hoist/Winch Operation
 Kibbles, Cages & Dogboxes
 Operators
 Dogman
 Forklifts
 Crown Lifts
 Erect Cranes
0230 SCAFFOLDING
 Scaffold Hire
 Mobile Towers
 Scissor Lifts
 Protective Screens
 Temporary Handrails
 Backpropping Podiums
 Swinging Stages
0240 PLANT & EQUIPMENT
 Pumps
 Compressors
 Concrete Pumps
 Job Truck
 Hiab Crane
 Fuel Truck
 Tyre Truck
 BHB Crane
 Generators
 Welders
0250 SMALL TOOLS
 General Small Tools

 Job Consumables
 Slings
0251 SURVEY
 Survey Eqipment (Pegs, Instrument, Special Equipment)
0260 FREIGHT
 Freight on Spares
 Freight on Major Plant Components
 Miscellaneous Freight
0261 FREIGHT ON FUEL

0270 GROUND ENGAGING
0271 GROUND ENGAGING/UNDERCARRIAGES

EXCESSES
0272 TYRE EXCESSES
0280 SAFETY
 Project Safety Signs

 Protective Clothing
 Barriers and Signs
 First Aid Consumables
0290 TESTING
 Testing Samples
 Transport Samples
 Laboratory Equipment
0300 TRAINING
 Seminar Costs
 Staff Training Costs
 Non Staff Personnel Training Costs
 Travel to Training Events
0301 INDONESIAN TRAINING IN AUSTRALIA

0310 ENTERTAINMENT
 Business Entertainment
 Non-Allowable Entertainment
 Staff Entertainment
0340 IMMIGRATION COSTS
 Visa Costs
 Work Permits
 SKJ’s etc
 Passports
0400 PERSONNEL TRANSFERS
 Fares
 Removal Costs
 Temporary Accommodation
 Recruitment Costs, Advertising etc.
0401 BUSINESS TRAVEL

 Fares
 Accomodation
 Meals
 Related Travel Costs
 Taxi’s
0402 LEAVE TRAVEL – NATIONAL
 Fares
 Accomodation
 Meals
0403 LEAVE TRAVEL – EXPATRIATE
 Fares
 Accomodation
 Meals
0404 AIRCRAFT CHARTER
0410 ESTABLISH SITE FACILITIES
 Site Preparation
 Construct Access Roads
 Building Foundations
 Set Up Buildings
 Compound Fencing
 Hoardings
 Gantries
 Stairs & Ladders
 Barriers
 Project Signs
0411 SITE UTILITIES
 Electricity
 Connect to Main Generator
 Reticulate
 Hook Up Buildings
 Lights
 Water Supply
 Install Storage/Treatment Plant
 Connect to Main/Storage
 Reticulate
 Sewerage
 Septic Tanks/Treatment Plant
 Connect to Main/Septic/Treatment Plant
 Reticulate
 Telephone
 Install
 Reticulate
0412 FURNITURE & EQUIPMENT OFFICE

 Purchase Office Equipment
 Purchase Furniture
0420 ESTABLISH CAMP + HOUSING
 Site Preparation
 Construct Access Road
 Building Foundation
 Setup Building
 Compound Fencing
0421 CAMP UTILITIES
 Electricity
 Connect to Main Generator
 Reticulate
 Lights
 Water Supply
 Install Storage/Treatment Plant
 Connect to Main/Storage
 Reticulate
 Sewerage
 Septic Tanks/Treatment Plant
 Connect to Main/Septic/Treatment Plant
 Reticulate
 Telephone
 Install
 Reticulate
0422 FURNITURE & EQUIPMENT CAMP/HOUSING
 Purchase Equipment
 Purchase Furniture
0430 ESTABLISH PLANT & EQUIPMENT -

MOBILISATION
 Plant & Equipment Transport

 Plant Assembly
 Set Up Special Equipment
 Transport Buildings
0440 DISESTABLISHMENT

 Disestablish Staff & Wages Personnel
 Disestablish Site Facilities
 Disestablish Camp
 Disestablish Plant & Equipment
 Final Clean Up
0450 INSURANCE
0460 UNINSURED LOSSES
 Insurance Excesses
 Losses Under Excess
0470 FEES
 Local Authority Fees

 Building Fees
 Miscellaneous Fee
0470 SECURITIES
 Bid Bonds
 Stamp Duty
 Security
 Retention
 Bank Guarantee/Insurance Bond Costs
 Statutory Fees
0480 LEGAL COSTS
 Legal Fees & Legal Costs
0710 AUDIT FEES
 Audit Only
0721 TAX AND ACCOUNTING FEES
 Tax and Accounting Consultancy
0730 BAD AND DOUBTFUL DEBTS
0740 BANK CHARGES
 Bank Fees
 Cheque Books
 Commitment Fees
 Arrangement Fees
0745 BANK INTEREST CHARGES
 Interest Charges

0746 INTEREST CHARGES
0747 BANK INTEREST INCOME
0750 EXCHANGE VARIANCE
0760 TENDER DOCUMENT

OPS - SP007 - Cost Control

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OPS - SP007 - Cost Control

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COST CONTROL

Quality Management System

1.0 PURPOSE & SCOPE

4.0 PROCEDURAL TEXT

Issue / Date Revision Description By Checke Checke Approved

A2 August 00 Cost Code Changes BMcG ES RL BAM

A3 Nov 00 TMS Review RO ES RO BAM

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1.0 PURPOSE AND SCOPE

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The Green Sheet is the tender summary in CCATS/CATS which sets:

 Direct Costs totals by cost type

 Indirect Cost/Preliminaries totals by cost type

 Provisional Sums/PC Items

 Late adjustments and discounts

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3.0 FLOWCHART TCI-OPS-SP007

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3.0 PROCEDURAL TEXT

 A cost control system is to be established to enable accurate cost monitoring and

 Cash position is to be accurately forecast on a monthly basis by the Project

 A favourable cash position is to be maintained by ensuring:

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- Rational timing of procurement orders

 Detailed Forecast Report

 Variation Report by Status

 Under / Overclaim Report

4.4 Project Number and Cost Codes

 Standard Cost Codes have been established for Overheads/Preliminaries. Cost

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 Quantity Adjustments in Schedule of Rates contracts

 Rise & Fall

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 Insurance claim receipts

 Budget Transfers between cost codes and cost types

4.9 Monitoring & Forecasting

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The value of commitments from Subcontracts and Orders is to be kept

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4.10.3 Schedule of Rates Contracts

 Check actual costs against budget

 Review Production Controls & Productivity

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4.11.2 Contracts Less Than 15% Complete

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i) On projects for which committed cost methodology is adopted for cost

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i) SITEMAN retains the same Forecast Cost at Completion as the

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COST CODES DESCRIPTION

0100 - 0999 Overheads/Preliminaries

Area 10 1000 Jakarta Office